Daily Management Review

WSJ: Ernst & Young gets ready for demerger


The Wall Street Journal (WSJ), citing its own sources, reported that the management of Ernst & Young (EY) is prepared to sanction division of the business into two distinct companies.

EuroCarGT @ Wikimedia Commons
EuroCarGT @ Wikimedia Commons
The major global consulting firm plans to separate its operations into audit and consulting services.

The sources note that the company's executive committee might adopt the demerger plan as soon as this week. Following that, the approximately 13,000 partners of Ernst & Young will vote on it. According to the newspaper, the actual separation could occur around the end of 2023.

According to EY, management is currently debating the company's future and "at this time, a decision to proceed to the next step has not been made."

source: wsj.com